HomeMy WebLinkAbout1982-041 CRA
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REL:jd
6/29/82
RESOLUTION NO. 82-41
A RESOLUTION OF THE REDEVELOPMENT COMMISSION OF
THE CITY OF SANTA ANA APPROVING A PERMANENT LOAN
COMMITMENT TO OLD PACIFIC BUILDING, INC. FOR
REHABILITATION OF PROPERTY AT 225 NORTH BROADWAY
BE IT RESOLVED BY THE COMMUNITY REDEVELOPMENT
COMMISSION OF THE CITY OF SANTA ANA AS FOLLOWS:
A Permanent Loan Commitment to Old Pacific Building,
Inc., for the rehabilitation of property located at 225 North
Broadway, subject to the terms and conditions set forth in
Exhibit A, attached hereto and incorporated by reference
herein, is hereby approved.
ADOPTED this 6th day of
1982, by the following vote:
July
AYES: MEMBERS: Burton, Coil, Jessee, Kane, McLean,
Newcomb
NOES: MEMBERS: None
ABSENT: MEMBERS: Nalle
ATTEST:
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EXECUTIVE DIRECTOR
APPROVED AS TO FORM:
l:J-"J J. Coopør L- I? E. L
EDWARD J. COOPER 7"
AGENCY LEGAL COUNSEL
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CITY OF SANTA ANA
COMMUNITY REDEVELOPMENT AGENCY
20 CIVIC CENTER PLAZA. SANTA ANA. CALIFORNIA 92701
July 6, 1982
The Old Pacific Building, Inc.
225 N. Broadway
Santa Ana, CA 92701
Re:
Permanent Loan Commitment
Rehabilitation Project
225 N. Broadway
Dear Participants:
We are pleased to advise you that the Community
Redevelopment Agency of the City of Santa Ana (the "Agency")
hereby commits to make a permanent loan (the "Loan") upon
the security of the real property and improvements located
at 225 N. Broadway in the City of Santa Ana, in accordance
with the subject to all the terms and conditions set forth
in that certain Project Agreement (225 N. Broadway) (the
"Project Agreement") dated as of December 1,1981, among the
Agency, Wells Fargo Bank, National Association ("Bank") and
you (the "Project Agreement") and that certain Commercial
Rehabilitation Participation Agreement dated August 17,1981,
b~tween Agency and you, as amended by the Project Agreement
(as so amended, the "Participation Agreement"). Without
limitation of any such terms and conditions, the principal
terms of the Loan are as follows:
1. The principal amount of the Loan shall be
$345,500.00.
The Loan shall be evidenced by a promissory note
("Participant Note") executed by The Old Pacific Building, Inc.
in the form of Exhibit C to the Project Agreement.
3. The Loan shall bear interest and be payable as
provided in the Participant Note. The rate of interest on
the Participant Note from the date thereof to December 1,
1986, shall be 11.5375% per annum (calculated on a Base
Rate, as defined in the Participant Note, on December 1,
1981 of 11.5%). The rate of interest will be adjusted on
December 1,1986 in accordance with the Bank's Base Rate in
effect on December 1,1986. The amount of the monthly
installments of principal and interest payable from January
1,1982 to December 1,1986 shall be $3431.35. The amount
of the monthly installments due from and after January 1,
1987 will be adjusted as necessary to reflect any change
made on December 1,1986 in the rate of interest.
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4. All obligations evidenced by the Participant Note
shall be guaranteed by Philip Charlton, Jon Michael Epland,
and Gary Donaldson.
5. Prior to or concurrent with your acceptance of
this Commitment, you shall pay the following amounts to the
Agency, or execute and deliver to the Agency the enclosed
Promissory Note for the sum thereof:
Professional Services Cost:
Reimbursement per Sections l2(b) and 16
of the Participation Agreement... $18,147.00
2% Fee per Section 15 of the
Participation Agreement .........
$ 6.910.00
$25,057.00
If and when escrow closes on the Loan, you shall be required
to pay an additional 3 percent fee in the amount of
$10,365.00, in accordance with Section 15 of the
Participation Agreement.
6.
This Commitment shall expire on October 20,1982.
Reference is hereby made to Section 8 of the Project
Agreement and to the Standard Terms and Conditions (as
modified by said Section 8) set forth as Exhibit C to the
Participation Agreement for a statement of the terms and
conditions to which this Commitment is subject. Copies of
said Section 8 and said Standard Terms and Conditions are
attached hereto for your convenience. Please note the lease
and income coverage requirements of Section 8.2.2 of the
Project Agreement. Nothing herein changes or waives any
conditions to this Commitment, as set forth in Section 8 and
the Standard Terms and Conditions.
This Commitment has been approved by the Redevelopment
Commission of the City of Santa Ana at its meeting of July
6, 1982.
This Commitment may not be assigned.
Very truly yours,
Rex Swanson
Executive Director
RS:ag
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ACCEPTANCE
The undersigned hereby accepts the above
Commitment and agrees to be bound by the terms and
conditions set forth or referenced therein. The undersigned
acknowledges that the Agency will assign its rights in the
subject loan as security for a loan obtained by the Agency
from Wells Fargo Bank in contemplation of the subject Loan,
and that Agency is not obligated to make the subject Loan
except from the proceeds of the loan obtained from said
Bank.
Dated:
THE OLD PACIFIC BUILDING, INC.
By
Phil ip CharI ton
By
Jon M~chael Epland
By
Gary Donaldson
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